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USDC stablecoin launched on Polkadot Asset Hub

source-logo  coininsider.com 20 September 2023 10:15, UTC

USD Coin (USDC) is extending its presence across various blockchain networks, with its latest launch on Polkadot. Currently USDC sits as the second-largest stablecoin by market capitalisation after Tether (USDT).

Circle, the issuer of USDC introduced USD Coin on the Polkadot network this week. According to Circle’s official statement, Polkadot USDC is now accessible to developers and users. This stablecoin can be seamlessly transferred to parachains within the Polkadot ecosystem through the XCM protocol, facilitated by Circle Account and Circle APIs.

Polkadot USDC is natively issued on the Polkadot Asset Hub, a central parachain specially designed for issuing, managing, and transferring digital assets across the entire Polkadot ecosystem.

Polkadot launched in 2020 and has since set itself as a dynamic project in the cryptocurrency landscape. The blockchain operates as a network comprising multiple independent blockchains, referred to as parachains. These parachains run concurrently, enabling faster transaction processing while benefiting from Polkadot’s overarching security and decentralisation.

Circle highlighted that Circle Account and Circle APIs exclusively support Polkadot USDC, native to the Polkadot Asset Hub within the Polkadot ecosystem. For users to use XCM for any transfers, they must first transfer USDC from their Circle Account to an external wallet address on the Polkadot Asset Hub. For this, Circle also issued a note of caution, advising users to avoid depositing XCM-transferred USDC from any parachain other than the Polkadot Asset Hub into their Circle Account:

“Please do not attempt to deposit XCM-transferred USDC from a parachain other than Polkadot Asset Hub to your Circle Account, as it may not be recoverable and could result in a loss of funds.”

Other cryptocurrencies compatible with the stablecoin

With this latest addition, USDC now boasts compatibility with 14 different blockchain networks, including Ethereum, Tron, Stellar, Solana, and others. The incorporation of Polkadot also brings features such as trading, borrowing, and lending on parachains like Centrifuge, HydraDX, and Moonbeam into the USDC ecosystem.

USDC’s growing support for various blockchains now exceeds that of its rival stablecoin, USDT. As of now, USDT supports a total of 11 networks. In August, Tether stopped minting the stablecoin on three blockchains, including Bitcoin Omni Layer, Bitcoin Cash, and Kusama, pointing to a lack of user interest. This expansion highlights USDC’s commitment to fostering accessibility and usability across multiple blockchain ecosystems.